The goal of this study is to explain why labor policy in South Korea was changed and what effects the changes had on capital (business) and labor, and how they responded to them by focusing on the reform efforts of labor laws between 1987 and 2001. In...
The goal of this study is to explain why labor policy in South Korea was changed and what effects the changes had on capital (business) and labor, and how they responded to them by focusing on the reform efforts of labor laws between 1987 and 2001. In order to do this the period in question is divided into three cuts (1987-1989, 1990-1995, and 1996-2001) according to changing political and economic conditions. While paying attention to the systemic requirements of both "capital accumulation" and "democratic legitimation" in a capitalist state, this study is based on capitalist state's strategical selectivity to explain the nature of changed labor policy.
During the period of 1987-1989, labor policies were characterized by pro-labor reformist ones by persuading capital to make material concessions to labor under the context of democratic transition and favorable economic situations. This pro-labor stance, together with the recognition of unions, is a strategic selectivity(choice) to overcome the "legitimation crisis" that experienced authoritarian governments due to labor suppression.
During the period of 1990-1995, labor policies focused on implementing total compensation scheme for the sake of reducing wage increases and on introducing flexible work schedule for facilitating labor market flexibility under the context of slowdown in the economy and the conservative large government party. These capital-friendly policies were designed to get the better of "accumulation crisis" that the sluggish economy is likely to bring about by stimulating economic growth at the expense of the welfare of workers. It is another state selectivity for capital against labor.
During the period of 1996-2001, labor policies were to institutionalize lay-offs as well as flexible work schedule based on the demands of capital and to legalize multiple unions as well as union's participation in politics based on the demands of labor under the context of continued economic recessions and extended democracy. The provisions for capital are intended to revitalize the economy, resulting in meeting the requirement of "capital accumulation." On the other hand, the provisions for labor are designed to strengthen labor rights in expending democracy, leading to meeting the requirement of "democratic legitimation." Accordingly, the labor policies are able to maintain a neutral stance between capital and labor by addressing some of the interests of the two while satisfying the two systemic requirements for a capitalist state.